Background
Hoffmann
– La Roche Diagnostics Division supply diagnostic
instruments, diagnostics re-agents and consumables together
with spare parts globally. In Europe, RDS operated 9 National
Distribution Centres supported by a Central Warehouse
in Switzerland.
A number of the re-agents have a short shelf life, which
results in high stock obsolescence and poor availability
of slow movers. In addition to this stock levels were
high being spread over a large number of locations.
By centralising the operations into a single EDC it provided
an opportunity to reduce stocks, improve stock availability,
reduce obsolescence and provide a more cost effective
service. |
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Activities
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We reviewed transport costs, manpower costs, property
costs, customs issues and potential service levels to
identify the optimum location. A project plan was set
up with clear objectives, responsibilities and critical
milestones.
A suitable lease was negotiated and the selected building
modified to provide multi- temperature storage compartment.
Layouts were completed and handling methodology defined
to optimise use of existing equipment within the group.
We organised recruitment of staff, acquisition and erection
of racking, cold store equipment,systems and transport
contracts to service all European countries
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Outputs
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Identification of the optimum location for a European
Distribution Centre
· Successful setting up the new EDC in Strasbourg
on time and within agreed budgets. On time was a maximum
of 6 months from start to finish.
· A risk free implementation plan for the closure
of each National Distribution Centre and the transfer
of all activities to the new EDC |
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Results
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A reduction of stock write-offs by more than 50%
· A reduction of stock outs by more than 80%
· Reduction of total stock inventory held
· Reduction of total distribution costs
· Improved service levels with a 24 hours delivery
service (from receipt of order to delivery to end user)
for all customers in the heartlands of Europe. This includes
Austria, Benelux, France, Germany and Switzerland |
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